Kenya has seen rapid growth in online forex trading over the past decade, driven by mobile money adoption, wider internet access, and a young population eager for investment opportunities. Unfortunately, this growth has also attracted unregulated brokers, fraudulent signal sellers, and Ponzi-style schemes that exploit inexperienced traders. In response, Kenyan regulators and financial institutions have begun tightening oversight, increasing public awareness, and building frameworks to protect retail traders.

The Role of the Capital Markets Authority (CMA)
The Capital Markets Authority is Kenya’s main regulatory body for online forex trading. In 2017, it issued new regulations requiring all forex brokers operating in Kenya to be licensed locally. This move was designed to bring oversight to an industry that had previously been dominated by offshore operators.
Licensed brokers must meet capital requirements, maintain segregated client accounts, and submit to regular audits. These rules aim to reduce the risk of fraud and ensure that client funds are not misused. The CMA also maintains a public list of licensed brokers, allowing traders to verify whether a company is operating legally in Kenya.
Crackdown on Unlicensed Brokers
Despite regulations, many offshore brokers continue to target Kenyan traders. These firms often advertise aggressively on social media, promising high leverage, guaranteed returns, and easy withdrawals. Since they are outside Kenyan jurisdiction, disputes over lost funds are nearly impossible to resolve.
The CMA has issued warnings against dealing with unlicensed brokers and has worked with law enforcement to restrict access to websites that mislead traders. Public campaigns have also been launched to encourage traders to check broker licenses before depositing money.
Mobile Money and Payment Controls
One of the biggest channels for forex scams in Kenya has been the widespread use of mobile money, particularly M-Pesa. Fraudulent brokers and fake account managers have used mobile payments to solicit deposits directly from traders. To fight this, regulators have partnered with telecom providers and banks to flag suspicious accounts and tighten monitoring of large, unexplained transfers.
By cutting off payment channels to scam operators, authorities aim to make it harder for fraudulent brokers to access Kenyan clients.
Public Education and Awareness
Awareness campaigns play an important role in combating forex scams. The CMA, local banks, and independent watchdogs regularly publish warnings and educational material explaining common scam tactics. Traders are encouraged to be skeptical of offers that guarantee profits, request upfront fees, or advertise unrealistic win rates.
Independent platforms, including websites like forex.ke, also contribute by publishing reviews, exposing scams, and guiding traders toward safer practices. These efforts complement official campaigns by providing information in more accessible, trader-friendly formats.
Challenges That Remain
Despite progress, Kenya still faces significant challenges. Enforcement against offshore brokers is difficult, as they operate beyond the CMA’s jurisdiction. Many traders are still drawn to unlicensed platforms by promises of higher leverage and lower deposit requirements. Financial literacy gaps also mean that scam marketing—such as fake testimonials and exaggerated profit claims—continues to find an audience.
Final Assessment
Kenya is making clear progress in the fight against forex scams by strengthening regulation, licensing brokers, controlling payment channels, and educating traders. While offshore scams remain a persistent threat, the combination of government action and public awareness is slowly improving the safety of the trading environment. Continued cooperation between regulators, telecom providers, and educational platforms will be key in reducing fraud and ensuring that Kenya’s growing interest in forex trading can develop on a safer, more transparent foundation.